Nicole is a salesperson at a local Ford dealership. Her bonus pay is dependent upon surpassing sales targets, thus increasing the profitability of the company. Which of the following governance mechanisms is illustrated in this scenario?

Question

Quizplus · Accepted Answer

The governance mechanism illustrated in this scenario is employee incentives. This mechanism uses financial incentives, such as bonuses and other rewards, to motivate employees to work toward achieving the company's goals and increasing profitability. By tying Nicole's bonus pay to sales targets, the company is incentivizing her to work hard to achieve those targets and contribute to the company's success.

Nicole Is a Salesperson at a Local Ford Dealership